Bank privatisation to happen as per schedule: Sitharaman

 

She was speaking at a press conference in Mumbai on the achievements of the Narendra Modi government in the last nine year

Finance Minister Nirmala Sitharaman on Monday said privatisation of public sector banks (PSBs) will happen as per the government’ schedule, indicating that those may be taken up after general elections in 2024.
“It (privatisation) will go on as per the schedule and there is no change in it,” Sitharaman said while responding to a question on progress of her earlier announcement to privatise two PSBs.
She was speaking at a press conference in Mumbai on the achievements of the Narendra Modi government in the last nine years.
In the Budget for 2021-22, Sitharaman announced the government’s intent to take up the privatisation of two PSBs.
As per the new Public Sector Enterprises (PSE) policy, the government would minimise the number of state-run firms in five strategic sectors, including banking while fully exiting from non-strategic sectors.
The government must either amend or repeal the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980, usually called Nationalisation Acts, to remove the hurdle to privatisation. However, the relevant Bills are yet to be introduced in Parliament. The government may delay processes for the proposed privatisation of some PSBs until the coming general elections are completed in May 2024, officials reckon.

In the meantime, the strategic disinvestment of IDBI Bank (technically a private bank) by promoter LIC and the government (a significant shareholder) later in the current fiscal would provide a template for the privatisation of PSBs.
Speaking at the event, Sitharaman also said that the government was monitoring retail inflation and would not let the guard down on it to insulate consumers from price shocks.
“The government is monitoring inflation. We are monitoring all data on the ground level also. Inflation is already moderating,” she said.
CPI inflation has gradually declined from a peak of 7.8% in April 2022 to an 18-month low of 4.7% in April 2023.
Sticky core inflation has moderated significantly to almost a three-year low in April, signalling a pass-through of lower input costs by producers.
RBI governor Shaktikanta Das recently said inflation print for May could be lower than 4.7% in April.
The finance ministry recently said prices of commodities sensitive to El Nino weather effects, such as coffee, rice, palm oil and natural rubber need to be continuously monitored.
Sitharaman said wheat prices rose in recent months, the government released grains from the buffer stock to cool prices.
“Wherever intervention is required we have been doing it,” the minister said.

Responding to former finance minister P Chidambaram’s comment that the introduction of `2,000 note and its subsequent withdrawal have cast doubt on the integrity and stability of the Indian currency, Sitharaman said that the RBI was well within its rights in withdrawing the notes.
“To cast aspersions on the matters of this nature, currency, decision of the central bank does not augur well with someone who was with the (finance) ministry,”
she said.
On May 19, the RBI announced the withdrawal of `2,000 notes from circulation and asked people to deposit or get them exchanged in banks by September 30.

#finance #finance #news #news

visit: https://finance.sfconferences.com/

Indian rupee marks weekly gains on FII inflows; traders might see profit-booking at 83 level

 

The Indian rupee recorded its first weekly gain in three weeks due to rallies in domestic equities and foreign fund inflows. The rupee’s strength is expected to be supported by month-end dollar inflows, central bank intervention, and lower crude oil prices.

Indian rupee marked the first weekly gain in three following rallies in the domestic equities backed by foreign fund inflows. The fall in crude oil prices and the expectation of a normal monsoon rain may drag inflation lower in the coming months. The month-end dollar inflows, the central bank’s intervention and lower crude oil prices could further support the rupee’s strength in the coming days.  Apart from the usual news flows, short-term traders should also eye on the Chinese Yuan for swing trades. A weakness below 7.10 Yuan will push the regional currencies lower and Rupee could also adjust with it. 

Spot USDINR fell 10 paise to 82.57 after touching three months high of 82.82 on Monday. The technical set-up remains bullish on the daily chart but we are expecting profit booking before heading towards a psychological level of 83. It has support at 82.30, the 100 days simple moving average. 

U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative deal to suspend the federal government’s $31.4 trillion debt ceiling on Saturday evening but were unable to cheer market sentiments. The deal would suspend the debt limit through January of 2025 while capping spending in the 2024 and 2025 budgets. 

In the week gone, the combination of fix-related greenback buying and higher Treasury yields after the PCE print, and comments from the Fed’s Loretta Mester, has put the dollar nearing the two-month high. US Treasury two-year yields climbed for an 11th straight session after data showed a pickup in inflation. The Federal Reserve Bank of Cleveland President Loretta Mester said she wouldn’t rule out another rate hike in June. 

Traders this week penciled in at least another quarter-percentage-point rate increase from the Fed in the June meeting. Fed funds futures traders are pricing in a two-thirds chance of a hike, up from about 18% a week ago.

What to Watch

US markets are closed for Memorial Day. A note of caution and uncertainty will pervade the Fed’s Beige Book, with more districts likely expecting the outlook to deteriorate. May’s jobs report (Fri.) will present the Fed with its final opportunity to comment on the economy before the blackout period begins for the June 13-14 FOMC meeting.

#money #money #finance #finance

Bank Nifty rangebound, directionless: Here’s what will help banking index breakout; US debt, RBI key to watch

 

Bank Nifty may witness a significant breakout if impending US debt ceiling negotiations and conjectures

around a pause in US Federal Reserve’s interest rate adjustments are resolved.

Bank Nifty, despite multiple attempts in the last one month, has failed to cross its all-time high of 44,151.80 so far. Since the last few sessions, it has remained range-bound and directionless, making investors anxious as the monthly derivatives expiry comes closer. While the fall of major banks in the US and Europe has capped the Bank Nifty’s growth, analysts believe that the US debt ceiling talks will further affect the global markets and a failure to reach a resolution will have catastrophic consequences on the global economy. Meanwhile, if Bank Nifty manages to surpass 44152-44200 levels then it may rally towards 44500, analysts said.

Bank Nifty to remain directionless until 43446-44095 levels are taken out

Bank Nifty is trading in a narrow range of 43446-44095 since the past five trading sessions. And unless these levels are taken out, the index is directionless, Om Mehra, Equity Research Analyst at Choice Broking said. Prashanth Tapse, Senior VP (Research), Mehta Equities believes that despite unfavourable global cues the index has been rising and the positive catalyst lies in the net buying of shares by both FIIs and DIIs at Dalal Street. “Bank Nifty’s breakthrough at 44153 could propel it towards the psychological 45000 mark,” Prashanth Tapse said.

When will Bank Nifty break the current directionless range?

“Bank Nifty could experience a significant breakout if impending debt ceiling negotiations and conjectures around a pause in Federal interest rate adjustments are resolved, either through a conclusion to the debt ceiling talks or a decision by the Federal Reserve to hold interest rates steady,” said Sonam Srivastava- Founder at Wright Research. Bank Nifty’s immediate support and resistance levels, according to her, are placed at 43871-43798 and 44049-44154, respectively.

US debt ceiling impasse continues to affect Nifty, Bank Nifty

“The US debt ceiling impasse continues to affect markets. Since failure to reach a resolution will have catastrophic consequences for the global economy and markets, a resolution of the crisis at the eleventh hour is the most likely scenario. But markets will be on tenterhooks till then. A global risk-on and rally is the most likely scenario after the resolution of the impasse,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. According to him the declining inflation and a possible rate cut by the RBI by the end of 2023 are clear positives for the market.

Stability in Bank Nifty heavyweight stocks: ICICI Bank, Axis Bank, IndusInd Bank, HDFC Bank

“Bank Nifty individual heavyweight components remain stable with the likes of ICICI Bank, Axis Bank and IndusInd Bank approaching fresh breakout levels. On the other hand, HDFC Bank is holding its immediate level quite strongly. This implies that the index is gearing up for a fresh breakout and once it gives a close above 44200 levels, it can witness a move towards 45000 swiftly,” said Gaurav Bissa, VP, InCred Equities.

Bank Nifty expected to rally towards 44500-45000 if it breaches crucial zone of 44152-44200

Based on technicals and options statistics 44152 and 44200 will be the most crucial zone to surpass. Above that it would rally towards 44500 and in the best scenario 45000, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities. He believes that as the index is approaching monthly expiry it is mandatory to surpass the above crucial levels, till then it will remain sluggish and range bond. Supports exist at 43700 and 43300. Based on the performance of Bank Nifty constituents it should cross the level of 44150/44200 in the near term, he added.

RBI MPC decision, GDP data to guide Nifty, Bank Nifty

The Nifty Bank rally has been very subdued as all important Q4FY23 bank results have been factored in along with markets waiting for important events like the US debt ceiling issue, India GDP data and RBI monetary policy decision in the 1st week of June. “Technically, 43380 will remain a strong support on the daily charts. A close above resistance of 44150 could lead to a target of 46111 in the near term,” said A R Ramachandran, Co-founder & Trainer, Tips2trades.

Call writers may panic if Bank Nifty breaks 44100

“Bank Nifty is on the verge of a potential breakout, which would be confirmed if it moves above the resistance level at 44100. Once this resistance is taken out, call writers (option sellers) may start to panic, anticipating further upward movement in the index,” said Kunal Shah, Senior Technical and Derivative analyst at LKP Securities.

#finance #finance #stockmarket #stockmarket

HDFC Bank Rs 2000 deposit, exchange from tomorrow: Here’s what the bank told its customers

 HDFC Bank customers can deposit any number of Rs 2000 banknotes into their accounts from tomorrow (May 23, 2023) till September 30, 2023, Customers can also exchange Rs 2000 with a daily limit of Rs 20000 from tomorrow.

“Your trust and convenience are paramount to us at HDFC Bank. We want to update you on the ₹2000 banknotes issued by the Reserve Bank of India (RBI),” HDFC Bank said in emails sent to its customers. The bank also asked the customers to note the following:

1. Legal Tender Assurance: The Rs 2000 banknote will remain legal tender. You can use it for all your transactions and receive it as a form of payment.
2. Hassle-free Deposits: You can conveniently deposit any quantity of Rs 2000 banknotes into your HDFC Bank account at any branch until September 30, 2023.
3. Easy Exchange: We offer a hassle-free exchange service at any HDFC Bank branch from May’23, 2023 onwards until September 30, 2023, allowing you to get your Rs 2000 banknotes exchanged with a per day limit of Rs. 20,000.

The RBI has decided to withdraw Rs 2000 denomination banknotes from circulation. People having Rs 2000 notes can either deposit them in their bank accounts or exchange them in any bank with other notes of small denominations.

Earlier, the State Bank of India (SBI) said that tenderers of Rs 2000 notes will not be required to fill out a requisition slip. The SBI also said that the submission of any identity proof like PAN or Aadhaar is not required for the exchange of Rs 2000 bank notes at any branch of the public sector bank.

While the RBI is withdrawing Rs 2000 notes from circulation, these high-denomination banknotes will remain legal tender even after September 30, the date by which RBI has urged people to deposit or exchange the Rs 2000 notes.

EPFO higher pension calculation latest news: Here’s how dues will be calculated

EPFO higher pension calculation of dues: The Employees Provident Fund Organisation (EPFO) has issued details of how the dues will be calculated for the processing of applications/joint applications for higher pensions.

For higher pension, some amount from the eligible members’ provident fund will be moved to the pension fund. Following are the details of how such dues will be calculated:

EPFO higher pension calculation of dues: The Employees Provident Fund Organisation (EPFO) has issued details of how the dues will be calculated for the processing of applications/joint applications for higher pensions.

For higher pension, some amount from the eligible members’ provident fund will be moved to the pension fund. Following are the details of how such dues will be calculated:

The Field Office will be calculated the dues after the verification of wage details submitted by the employer (S) and taking care of following in the process, according to EPFO circular dated May 11, 2023.

1. Each member/pensioner’s case will be processed in a separate file, created in the e-office with clear marking of the Application ID (system-generated acknowledgement number for online application for validation/joint option).
2. In the case of exempted establishments, the wage details for the entire period and the matching contribution should be available with the exempted establishments and consistent with the records of the trust.

3. The dues will be calculated in the following manner:

   a. 8.33% of the employer’s share on higher pay (w.e.f 16-11-1995 or the date the pay exceeds the wage ceiling; whichever is later) will be calculated as per records).

   b. 1.16% of employer share on higher pay above Rs 15,000 per month (w.e.f. 01.09.2014) will be calculated as per records towards increased contribution.

   c. All amounts already deposited into the Pension Fund will be deducted from the sum of the above two.

   d. The interest to be charged on dues as calculated above will be the interest earned by the members on their PF accumulations.

   • For un-exempted establishments, the interest will be calculated at the rate declared under Para 60 of EPF Scheme 1952.
   • For exempted establishments, the interest will be calculated at the rate declared under para 60 of EPF Scheme, 1952 or at the rate declared by the Trust of exempted establishment from time to time, whichever is higher, if any.The EPFO is yet to explain how the higher pension will be calculated. It is expected to soon release a separate circular with details of the method of calculation of higher pension

FinMin permits 22 finance cos to undertake Aadhaar-based verification of clients

 

The Finance Ministry has allowed 22 financial companies, including Amazon Pay (India) and Hero FinCorp, to undertake Aadhaar-based authentication of clients. The ministry, through a notification, said these 22 companies, which are already reporting entities under the PMLA, will be able to verify the identity of clients and beneficial owners' details using their Aadhaar numbers.

These 22 financial companies include Godrej Finance, Amazon Pay (India) Pvt Ltd, Aditya Birla Housing Finance,  ..

Read more at:
https://economictimes.indiatimes.com/news/economy/finance/finmin-permits-22-finance-cos-to-undertake-aadhaar-based-verification-of-clients/articleshow/100012383.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

"Accordingly, the CG has notified a list of 22 financial institutions/intermediaries, which are permitted to use Aadhaar authentication to verify the identity of clients/ beneficial owners," Jhunjhunwala said.

The other modes of verification prescribed under the Money Laundering Act include offline verification under the Aadhaar Act, use of a passport and any other officially valid document or modes of identification as may be notified by the central government, and the client has a volu ..

Read more at:
https://economictimes.indiatimes.com/news/economy/finance/finmin-permits-22-finance-cos-to-undertake-aadhaar-based-verification-of-clients/articleshow/100012383.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst